Macquarie, Maeda to Form Japan Infrastructure Joint Venture

Macquarie Capital, the corporate advisory and capital markets arm of Macquarie Group Ltd., and Maeda Corporation said they’ll form a joint venture to invest in infrastructure and renewable energy.

The venture will initially focus on solar power projects in Japan, as the nation ramps up its demand for more clean energy. In the 12 months to June 30, since Japan introduced feed-in tariffs–an incentive program to reduce dependence on nuclear energy in the wake of the Fukushima disaster–the nation added almost 3,700 megawatts of capacity from renewable sources, its Ministry of Economy, Trade and Industry said earlier this month.

The duo intend to launch the joint venture by the end of 2013, and for every project will invest in separate special-purpose vehicles which will raise project finance from lenders. By the end of 2016, the joint venture hopes to have exposure to projects with 300 megawatts of generation capacity, with combined projects worth 100 billion Japanese yen (US$1.02 billion).

As the joint venture matures, Macquarie and Maeda will seek investments in infrastructure projects in sectors including wind power, tollroads and airports. Tokyo-based building and engineering firm Maeda is already active in Japan’s renewable sector, developing projects including the Yasuoka Offshore Wind Farm in Shimonoseki City and Goyozan Solar Power Generation Project in Ofunato City.

The agreement comes as billionaire Masayoshi Son, Japan’s third-richest man according to Forbes Magazine with net wealth of US$9.1 billion, and his company Softbank Corp. continue to act as an advocate for renewable energy — he proposed last year that all of Japan’s nuclear generation should be replaced by renewable energy sources.